The Long-Term Bullish Case for Binance Coin (BNB)
Binance Coin is way ahead of other cryptocurrencies for price growth so far in 2019.
As we approach Spring 2019, BNB has been the only coin out of the Dirty Dozen to rally to price levels from before 2018’s winter in equities and crypto prices.
The Dirty Dozen are the twelve relatively mature cryptocurrencies that currently have a $1M+ market cap and a lot of circulating volume- so they flow through many hands.
There will be more than a dozen again soon enough as many more private currencies swell in capitalization to the $1M+ threshold. But the current roster is: Bitcoin, Ethereum, XRP, Litecoin, EOS, Bitcoin Cash, Binance Coin, Stellar, Tether, TRON, Cardano, and Bitcoin SV.
Of these 12 most highly capitalized cryptocurrencies BNB currently comprises 1.8% of the total market capitalization, ranking Binance Coin seventh out of all cryptocurrencies globally in order of market cap size, behind Bitcoin Cash and ahead of Stellar.
TRON Founder and CEO Justin Sun says Binance Coin is another Bitcoin.
For a sense of scale:
Bitcoin- to which Binance Coin has been compared recently on its remarkable run ahead of the rest of the pack (e.g. Binance coin is “the next Bitcoin,” as TRON Founder and CEO Justin Sun has averred)- comprises 60% of the Dirty Dozen’s total market capitalization.
So notwithstanding the assessment of the venerable TRON Founder, and owner of BitTorrent who did after all just make $2.8M worth of BNB for an offering of 23.7M BTT in January, Binance Coin would have a way to go before it’s the next Bitcoin.
But it’s got potential.
Litecoin is appreciating very well in 2019, but its price gains are nothing like Binance Coin’s 2019 liftoff.
The only other major, older coin to shake off the frost from 2018’s crypto winter and warm up to a spring price breakout anything like Binance Coin’s is Litecoin.
Litecoin is the 2011 fork of the Bitcoin core software implementation to create a coin with similar properties to Bitcoin, but which processes new blocks every 2.5 minutes instead of every 10 minutes, and which uses the more computationally-intensive Scrypt for proof of work hashes instead of SHA-256 like Bitcoin.
The altcoin has been described as the digital equivalent of silver to Bitcoin’s status as the digital equivalent of gold. Its advantages are lower transaction fees than bitcoin, and shorter average transaction confirmation time.
Until ASICs were updated in the never ending mining arms race to be Scrypt capable, Litecoin also created interest for people with CPUs who could not compete with these Application Specific Integrated Circuits.
Scrypt requires proof your RAM worked too, briefly shutting out the ASIC computational artillery designed for the sole purpose of performing hashes and mining bitcoin.
As the next halvening of the miners’ Litecoin reward in August 2019 approaches, crypto investors are filling their saddles with Litecoin. But digital silver still has a ways left to reach its pre-2018 crypto winter valuations like liquid coin for ICO investments have.
Perhaps because you can’t use Litecoin to invest in these glittering prizes:
A Binance Launchpad ICO boom is giving Binance Coin’s price a massive rocket boost.
On January 28 the BitTorrent Token (BTT) ICO, which sold 59.4 billion BTT for around $7 million (at a price roughly equivalent to $0.00012 USD for 1 BTT), sold out in under 15 minutes for both BTT/BNB and BTT/TRX sessions.
The sale happened so fast people complained that they were unable to make a purchase of BTT at the time of the ICO within minutes of the coin offering opening.
Although all transactions cleared with coins in their new owners’ accounts in under 15 minutes for both sessions, Binance CEO C.Z. says if he had used more computer power to process requests the $7 million BTT ICO could have been completed in ten seconds.
It was over in a about 10 seconds. The queue was totally packed within seconds. The processing is just draining the queue slowly. Congrats to @fetch_ai !
— CZ Binance (@cz_binance) February 25, 2019
Since February 25, the price of BTT has settled into a very stable $0.00074496 USD / 1 BTT for a cool 521% return on the initial investment for those who traded their BNB or TRON for BTT. Even with its meteoric rise since BTT’s Jan 28th ICO, Binance Coin’s 160% price increase was still no match for the file sharing giant’s token hot off its ICO.
Far vaster profits were made by those who sold their BitTorrent Tokens in February when 1 BTT could fetch four Lincoln pennies before the price settled to its current level.
Since then another Binance Launchpad-powered ICO, for Fetch.AI, fetched $6 million for the coin’s developers in 22 seconds over Binance.
Fetch.AI tokens debuted at a price of 0.008584 BNB / 1 FET, and will currently fetch back .01448 BNB for every 1 Fetch.AI token investors bought.
The next Binance Launchpad ICO will be on March 19th for Celer.
For risk tolerant day traders who’ve been following along closely with crypto and ICOs seeking short term opportunities for high rewards, the ability to make those kind of returns on a speculative investment in promising new cryptocurrencies is throwing fuel on the fire of the raging demand for BNB that Binance has so methodically built.
Despite the crypto community’s (albeit in many cases rather compelling) disparagement of the ICO bubble- which accumulated its fair share of well-deserved criticisms throughout 2017 and 2018, along with massive infusions of capital for the coins’ creators and huge profits for some very well-funded, highly-organized speculators, who know what they’re doing- crypto investors continue to have a relentless appetite for ICOs in 2019.
Along with providing liquidity and discounted fees for trades among the 171 cryptos currently exchanged on Binance, BNB Coin seems to be well assured of trading strong throughout 2019, buoyed by investor demand for bits of the tech businesses knocking on Binance’s door, massive user base and a sensible use case for tokenization in tow.
Disclaimer: The author owns BNB Coin, Bitcoin, and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.